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BUS 490 WK 6 Quiz 5 Ch. 5 - All Possible Questions To Purchase Click Link Below:

BUS 490 WK 6 Quiz 5 Ch. 5 - All Possible Questions

1) Long-term objectives represent the results expected from pursuing certain strategies. 2) Objectives provide direction and allow for organizational synergy. 3) Strategic objectives include those associated with growth in revenues, growth in earnings, higher dividends, larger profit margins and improved cash flow. 4) Strategic objectives include larger market share, quicker on-time delivery than rivals, quicker design-to-market times than rivals, lower costs than rivals, and wider geographic coverage than rivals. 5) "If it ain't broke, don't fix it" refers to managing by crisis. 6) The overall aim of the Balanced Scorecard is to balance financial objectives with strategic objectives. 7) Since a combination strategy bears no risk, many organizations pursue a combination of two or more strategies simultaneously. 8) Horizontal integration is seeking ownership or increased control over competitors. 9) Divestiture is selling all of a company's assets, in parts, for their tangible worth. 10) A chief executive officer is located in the divisional level of a large firm. 11) Gaining ownership or increased control over distributors or retailers is called forward integration strategy. 12) Franchising is an effective means of implementing forward integration. 13) A growing trend is for franchisers to buy out their part of the business from their franchisees. 14) McDonalds currently owns more than 50 percent of its restaurants.

15) Forward integration strategy is especially effective when the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward. 16) A strategy of seeking ownership or increased control of a firm's suppliers is backward integration. 17) If a firm's present suppliers are expensive and unreliable in meeting the firm's needs for parts, components and/or raw materials, the firm should pursue a horizontal integration strategy. 18) Horizontal integration is an appropriate strategy when the competitors of an organization are doing poorly. 19) Market penetration, market development, and product development are intensive strategies. 20) When the correlation between dollar sales and dollar marketing expenditures has historically been low, market penetration is an appropriate strategy. 21) Market development includes introducing present products into new geographic areas. 22) An appropriate strategy when an organization has excess production capacity is market development. 23) Pepsi has 41 percent of the potato chip market in China. 24) Product development is a strategy that seeks increased sales by improving or modifying present products or services. 25) Product development is an appropriate strategy when an organization has successful products that are in the maturity stage of the product life cycle. 26) There are four basic types of diversification: concentric, conglomerate, forward and backward. 27) Most companies favor related diversification strategies in order to exploit common use of a well-known brand name. 28) Diversification strategies are becoming more popular as organizations are finding it easier to manage diverse business activities. 29) J.M. Smuckers Co.'s acquisition of Procter & Gamble's Folger's coffee business is an example of related diversification.

30) Unrelated diversification is an appropriate strategy when an organization's present channels of distribution can be used to market the new products to current customers. 31) IBM's entrance into the water management business is an example of related diversification. 32) Unrelated diversification may be an especially effective strategy when an organization's basic industry is experiencing increasing annual sales and profits. 33) Retrenchment and turnaround are the same strategy. 34) Although bankruptcy can be an effective type of retrenchment strategy, it does not allow firms to avoid major debt obligations and to void union contracts. 35) Chapter 7 bankruptcy is a liquidation procedure used only when a firm sees no hope of being able to operate successfully or to obtain necessary creditor agreement. 36) Chapter 9 bankruptcy applies to municipalities. 37) Personal bankruptcy filings in the U.S. exceeded 1 million for the first time ever in 2008. 38) Chapter 13 bankruptcy is similar to Chapter 11, but available only to large corporations. 39) Divestiture is the selling of all of a company's assets. 40) Divestiture has become a popular strategy for firms to focus on their core business and become more diversified. 41) Liquidation is often appropriate when retrenchment and divestiture have failed. 42) According to Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation and integration. 43) For consumers who are price sensitive, cost leadership emphasizes producing standardized products at very low per-unit cost. 44) A best-value strategy offers products or services to a wide range of customers at the best price-value available on the market. 45) A low-cost focus strategy offers products or services to a small range of customers at the lowest price available on the market. 46) Jiffy Lube International would be a good example of a firm seeking the best-value focus strategy.

47) A cost leadership strategy can be especially effective when most buyers use the product in the same way. 48) A differentiation strategy can only be achieved with a large target market. 49) Differentiation guarantees competitive advantage. 50) The most effective differentiation bases are those that are hard or expensive for rivals to duplicate. 51) A low cost focus strategy can be especially attractive when the target market niche is small. 52) A differentiation strategy can be especially attractive when the industry has many different niches and segments, thereby allowing a focuser to pick a competitively attractive niche suited to its own resources.

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